Part 2. Analyse information and knowledge

Q4. Business Performance Analysis Report.
Scenario:
ABCBikes models a bicycle industry in a western capitalist economy with a population of approximately 15 million people. Consumers in this markets have high discretionary income, and will freely buy any bicycle that suits their individual needs. There are three segments within this market: the low cost Youth Bike segment, the mid-range Mountain Bike segment and the high cost Road Bike segment. Importers were originally supplying all three segments, but in order to protect local manufacturers, the government has regulated the market and restricted the importing of bicycles and bicycle components from other countries, now leaving all three segments available to the local manufacturers.
Having recently completed a Business qualification you have been hired by your company as the Company Marketing Manager to oversee their products marketing and sales. Once you have proven yourself you will be promoted to Vice President of Sales & Marketing and be given control of Production, Finance and Product Development. You will then be groomed to be appointed the Company President (CEO) and be responsible for overseeing the planning, implementation and evaluation of your firm’s strategic company plans.
The company itself is one of the leading firms in the mountain bicycle industry, and is currently operated by an existing management team responsible to its many shareholders who have recently invested in your firm post-government intervention providing the company with much needed capital (cash). The key spending areas in the last year were around improving products quality which has contributed to the increase in prices for two types of bikes.
On 20.01.2016 you received the following email from Brenda Elliot, your supervisor, who asked you to report back to her on the information she received from the Sales team: